Access Charges Regulation under Asymmetric Mobile Networks

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Alexander Correa

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Published: 31 May 2018 | Article Type :

Abstract

In order to suggest an appropriate regulatory regime in a context of firm asymmetry, this study has developed a mathematical model that allows to elucidate comparisons of three different regulatory scenarios. In the unregulated market, the low-cost firm is more likely to become dominant in the market. Symmetric regulation has an immediate effect on off-net prices, which fall to the level of its marginal costs. Finally, asymmetric regulation is a highly effective way of promoting market entry. Asymmetric regulation can generate higher social welfare.

Keywords: Access charge regulation, asymmetry, reputation, interconnection

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Alexander Correa. (2018-05-31). "Access Charges Regulation under Asymmetric Mobile Networks." *Volume 1*, 2, 27-41